When it comes time to sell your home in Vancouver how much does it cost?
Generall you will have some closing costs such as fees for a lawyer or notary to help transfer title which is usually between $800-$1300. You will also have some adjustments at closing depending on what you may owe or be owed for property tax and strata fees. You may also have moving fees or need to put down a deposit with your strata to book the elevator.
But how much does it cost to hire you as our Realtor? The cost will generally be the same if you are selling a condo, townhome, duplex, detached home or bare land. According the the Canadian Competition Act we are not allowed to say that there is a "standard commission'.
With that being said most Realtors in Vancouver charge 7% on the first $100,000 and 2.5% on the remaining balance of the SOLD price not the asking price. If your home doesn't sell you will not be responsible for the fees.
What sellers are not always aware of is that this amount is SPLIT between the listing agent that you are working with and the agent that is representing the buyer of your home. You may not remember, but when you bought your home you didn't pay your buyer's agent any fees. That's because they are usually paid by the sellers as an incentive to bring their clients to your home.
Commission is Part of the Marketing Budget
Part of the reason we split the commission and offer a full buyers agent fee is to attract qualified buyers to come take a look at your property. This is how buyer agents are paid so it's important that we incentivize them to bring the buyers that they are working with. Most qualified buyers that are serious about finding their next home are actively working with a buyers agent.
The standard split for buyers agents in Vancouver is 3.255% on the first $100,000 and 1.1625% on the remainder. Some sellers may choose to add a bonus in here as an incentive but we find that generally this amound is sufficient to bring buyers through the door in Vancouver.
Remember this is only paid when the sale goes through and title is transferred at the Land Titles Office.
The conversation of discount brokerages is one that we should not ignore. Essentially a discount agent will charge a smaller commission because they are offering buyers agents less. Doing so provides less incentive for buyers agents to show these homes and if they do write an offer they often write in that the buyers agent will receive full commission anyways.
You may end up paying full commission at the end of the day, without likely getting the same service as a full service agent would provide.
When We Hire You, Who Pays for What?
Once we are the designated agent for listing your property, you will not be responsible for paying for any of the costs associated with marketing your property, unless we are looking at extensive staging. We cover the costs of professional photos, videography (if needed), floorplans, strata document orders, measurements, MLS exposure, online marketing, feature sheets, open houses, and all of the conveyancing from once you have an accepted offer to when you sit down with your lawyer.
If you have any QUESTIONS, DON'T HESITATE TO ASK. We would love to hear from you and discuss.
If you would like more information on how to sell your home feel free to give us a call or shoot us a text at 604-363-7858.